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Judge rules xAI must face the NAACP's pollution lawsuit over its Memphis turbines

The company argued its gas turbines were mobile and exempt from permits. The court said the power plant feeding its data center is not.

Gas turbines venting smoke next to a data center, with a judge's gavel in the foreground

The "they have wheels" defense didn't work.

US District Judge Debra M. Brown denied xAI's request to dismiss an NAACP lawsuit over the gas turbines powering its data center campus in Memphis, Tennessee, Engadget's Jackson Chen reported. The case can now go forward.

The NAACP sued in April, accusing the company, now called SpaceXSI, of running methane gas turbines without proper permits in violation of the Clean Air Act. While the case was pending, the company kept adding turbines at another data center site in nearby Southaven, Mississippi.

xAI argued the turbines didn't need permits because they were mobile, and the Justice Department backed its bid to dismiss, describing its operations as important to US military work. Judge Brown found that the power plant supplying the data center wasn't mobile, so the exemption didn't apply.

Why it matters

The race for compute keeps running into the same wall: the neighbors. Power is the bottleneck for AI data centers, and on-site gas generation is the fastest way around the grid. This ruling says speed doesn't exempt you from the permits everyone else needs, and it gives communities near these sites a path to be heard in court.

Scoreboard update: Humans +1. Memphis neighbors get their day in court against xAI's turbines.

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